{"id":5064,"date":"2025-08-07T16:42:23","date_gmt":"2025-08-07T11:12:23","guid":{"rendered":"https:\/\/belgaumnow.com\/?p=5064"},"modified":"2025-08-07T17:11:09","modified_gmt":"2025-08-07T11:41:09","slug":"karnataka-government-fails-beedi-workers-houses-incomplete-funds-unused-faces-interest-penalty","status":"publish","type":"post","link":"https:\/\/belgaumnow.com\/?p=5064","title":{"rendered":"Karnataka Govt. Fails Beedi Workers: Houses Incomplete, Funds Unused, Faces Interest Penalty"},"content":{"rendered":"
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Unfinished Promises: Beedi Workers\u2019 Housing Scheme Stumbles Amid Fund Mismanagement<\/strong><\/span><\/h2>\n

Story By G Mahantesh<\/span> | August 5, 2025 | Translation by a volunteer for ‘The File’<\/em><\/h3>\n
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Housing Scheme Lags Behind Expectations<\/h3>\n

Bengaluru \u2014 Eighteen years after the launch of the Revised Integrated Housing Scheme (RIHS) in 2007 aimed at providing homes for beedi workers, progress in Karnataka remains alarmingly subpar. Despite ambitious goals, many districts have failed to meet their targets under the scheme, leaving hundreds of workers still without permanent shelter.<\/p>\n

Adding to the setback, the state has been unable to fully utilize the central grants allocated for construction. Consequently, the unutilized funds, now accruing interest, must be returned to the Centre \u2014 a financial burden that the government is struggling to manage.<\/p>\n

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Centre Pulls Up State Over Delay<\/h3>\n

In a letter dated July 21, 2025, the Union Ministry of Labour and Employment expressed serious concerns over the delay and inefficiencies in the implementation of the scheme in Karnataka. It directed the state government to return \u20b915.8 lakh in unspent funds with interest, due to incomplete housing projects in Tumakuru district\u2019s Sira taluk.<\/p>\n

This prompted the State Housing Department to write to the Rajiv Gandhi Rural Housing Corporation (RGRHC) on July 28, seeking detailed updates. However, as of this report, the corporation has failed to respond.<\/p>\n

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Incomplete Homes, Overgrown Lots<\/h3>\n

Under the RIHS, 279 houses were sanctioned for beedi workers in Sira taluk. Of these, 79 remain incomplete, with some lying abandoned and overgrown. Tumakuru\u2019s Sira taluk is represented by senior Congress leader T. B. Jayachandra \u2014 raising political eyebrows as the area continues to reflect failed execution despite being under high-profile leadership.<\/p>\n

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“Return Unspent Funds with Interest”: Centre Warns<\/h3>\n

According to government correspondence reviewed by The File<\/em>, the Centre has made it clear that any delay in returning the unused funds will result in further escalation of the interest amount \u2014 for which the state government and RGRHC will be held directly accountable.<\/p>\n

\u201cThe \u20b915.8 lakh that remains unutilized must be returned immediately with interest. Any further delay will increase the liability,\u201d stated a directive addressed to the Managing Director of the RGRHC.<\/p>\n

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Beedi Workers Left Waiting<\/h3>\n

Originally rolled out in 2007 to address the acute housing shortage among beedi workers, the RIHS aimed to support eligible workers through financial assistance, group housing via cooperatives, and individual construction on land owned or allocated by the government.<\/p>\n

Each rental home under the scheme was budgeted at \u20b945,000 \u2014 including a \u20b940,000 central subsidy and \u20b95,000 from the beneficiary. Any additional costs were to be borne through loans or state support.<\/p>\n

However, 18 years later, the implementation paints a disappointing picture.<\/p>\n

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Statewide Housing Progress Grim<\/h3>\n

Across Karnataka, out of 6,72,499 houses sanctioned under various rural and urban housing schemes, only 4,01,072 have seen any real progress. Of these, just 2,71,427 houses have received the first installment \u2014 indicating a mere 42% overall progress.<\/p>\n

In Mysuru, Chief Minister Siddaramaiah\u2019s home district, 35,451 homes were approved. Only 19,673 are under construction, with 15,778 receiving the first installment. In Housing Minister B.Z. Zameer Ahmed Khan\u2019s constituency of Bengaluru Urban, 3,095 houses were sanctioned, but work has yet to begin on 391 of them.<\/p>\n

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Key District-wise Breakdown (Rural and Urban)<\/h3>\n
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    Vijayapura:<\/strong> 42,966 homes sanctioned; 18,170 under progress; 24,796 (58%) received first installment.<\/p>\n<\/li>\n

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    Belagavi:<\/strong> 42,237 sanctioned; 24,887 under progress; 20,350 disbursed.<\/p>\n<\/li>\n

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    Bidar:<\/strong> 31,960 sanctioned; 13,658 progressing; 13,302 funded.<\/p>\n<\/li>\n

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    Raichur:<\/strong> 40,096 sanctioned; 22,131 progressing.<\/p>\n<\/li>\n

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    Kalaburagi:<\/strong> 40,007 sanctioned; 20,869 in progress; 19,138 funded.<\/p>\n<\/li>\n

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    Tumakuru:<\/strong> 32,479 sanctioned; 20,895 progressing; 11,584 funded.<\/p>\n<\/li>\n

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    Chamarajanagar:<\/strong> 23,479 sanctioned; 12,415 progressing; 11,064 funded.<\/p>\n<\/li>\n

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    Bagalkot:<\/strong> 23,297 sanctioned; 12,234 progressing; 11,063 funded.<\/p>\n<\/li>\n<\/ul>\n

    Similar delays were observed in Yadgir, Koppal, Dharwad, Mandya, Udupi, Chikkamagaluru, and other districts.<\/p>\n

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    Urban Housing Also Stalled<\/h3>\n

    Under the Pradhan Mantri Awas Yojana (PMAY), only 26% progress was recorded across 31 urban districts in Karnataka. In Bengaluru and Udupi, even the basic target of identifying eligible beneficiaries hasn\u2019t been met.<\/p>\n

    Out of 42,538 houses sanctioned under various urban housing initiatives, only 37,303 are progressing, while 5,235 projects remain at a standstill.<\/p>\n

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    Unutilized Funds and Allegations of Corruption<\/h3>\n

    During the previous BJP government\u2019s tenure, over \u20b9751 crore allocated to the Housing Department remained unused. Allegations of widespread corruption in tenders under the slum development board and Rajiv Gandhi Housing Corporation were raised by the then Opposition Leader and now Chief Minister Siddaramaiah.<\/p>\n

    The Housing Department had also engaged in communication with private firms like Boston Company for housing development on government land, a move that triggered transparency concerns.<\/p>\n

    The present Congress government has now sought a fact-based report on the irregularities that plagued the BJP-era housing initiatives.<\/p>\n

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    Rajiv Gandhi Housing Scheme in Disarray; Minister Zameer Ahmad Khan<\/span> Silent Amid Scandal<\/h3>\n

    The Karnataka Government’s Ministry of Housing, under the leadership of Minister B.Z. Zameer Ahmad Khan, stands at the center of a glaring administrative failure that has severely impacted thousands of beedi workers across the state. Despite the availability of central funds and a well-defined housing scheme launched in 2007, the ministry has failed to ensure timely implementation, effective fund utilization, and completion of sanctioned housing units. The shocking revelation that \u20b915.8 lakh of central grant remains unutilized \u2014 and must now be returned with interest \u2014 exposes the ministry’s inability to coordinate with executing agencies like the Rajiv Gandhi Rural Housing Corporation. Moreover, the ministry has not provided adequate public accountability or responded to official queries, even as unfinished homes lie abandoned and overgrown in districts like Tumakuru. This situation reflects a broader pattern of bureaucratic inefficiency and lack of political will that continues to undermine welfare programs intended for the most marginalized.<\/p>\n

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    Unanswered Questions<\/h3>\n

    The File<\/em> has sent detailed queries to the RGRHC regarding:<\/p>\n